U.S. 10-Year TIPS Sale Draws Lower-Than-Average Demand on Fed

The U.S. sale of $13 billion of 10-year Treasury Inflation Protected Securities attracted below-average demand a day after Federal Reserve Chair Janet Yellen signaled inflation isn’t a “significant concern.”

Investors bid for 2.48 times the amount of notes available at the sale, below the average of 2.52 at the previous 10 auctions. Primary dealers picked up 45.4 percent of the notes, the most since September 2012. The securities yielded 0.659 percent, exceeding the 0.652 percent average forecast of six of the Fed’s 22 primary dealers in a Bloomberg News survey before the auction.